Rising Equipment Demand and Mega Infrastructure Projects Fuel Growth in Construction Lubricants Market

According to the latest market research study published by P&S Intelligence, the global construction lubricants market stood at USD 9.5 billion in 2024 and is projected to reach USD 12.9 billion by 2032, expanding at a CAGR of 4.0% from 2025 to 2032. This robust growth is primarily attributed to the increasing integration of process automation in construction, alongside a steady rise in the demand for construction equipment globally. The proliferation of e-commerce platforms further enhances market penetration, while innovations such as zinc-free lubricants are opening up new avenues for environmentally responsible solutions.

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Government-backed infrastructure initiatives across multiple regions are significantly bolstering market expansion. The U.S. Infrastructure Investment and Jobs Act (IIJA) and India’s National Infrastructure Pipeline (NIP), with spending estimates of USD 1.2 trillion and INR 109 lakh crore respectively, are key contributors. Meanwhile, China and Saudi Arabia are leading the charge with construction investments totaling over USD 5 trillion and USD 2.1 trillion, respectively, over the next few years. These mega projects are not only accelerating equipment utilization but also increasing the demand for high-performance lubricants that ensure efficiency, reduce wear, and extend equipment life.

Key Insights

• The hydraulic fluid category dominated the market in 2024, accounting for 40% share, driven by its extensive use in modern construction machinery such as excavators and loaders. Engine oil emerged as the fastest-growing application, propelled by the rising adoption of turbocharged diesel engines and high-pressure systems.
• Earthmoving equipment, including excavators and bulldozers, led the market with a 55% share due to continuous operation in extreme environments. Material handling equipment is projected to grow at the fastest rate (approx. 4.5% CAGR), fueled by booming logistics infrastructure and high-rise construction needs.
• The mineral oil segment held the larger share of 80% in 2024, supported by affordability and compatibility with older fleets, particularly in cost-sensitive regions. However, synthetic oil is expected to grow faster due to superior performance, extended oil life, and thermal stability across −40 °C to 150 °C.
• Asia-Pacific led the global market with a 40% revenue share in 2024, powered by massive infrastructure investments in China and India. The region’s challenging climates necessitate robust lubricant solutions, and rising renewable energy projects further fuel lubricant demand.
• North America contributed 25% of the global revenue, with high uptake of synthetic lubricants due to advanced equipment specs and stringent regulations. The IIJA’s USD 1.2 trillion allocation and reshoring of manufacturing are key growth enablers in the region.
• Europe accounted for 20% of the market, with the highest penetration of bio-based lubricants due to strong environmental commitments. Aged construction fleets in the EU demand high-quality lubricants for sustained performance and reduced emissions.
• Technological advancements are shaping the industry, such as nano-additives (e.g., boron nitride) and anti-wear formulations that enhance durability, reduce maintenance, and extend oil drain intervals up to 250,000 miles in fleet trials.
• IoT-enabled lubrication systems are revolutionizing predictive maintenance. Sensors now monitor lubricant performance, contamination, and degradation in real-time, minimizing downtime and boosting equipment reliability.
• With construction equipment contributing 5.5% to global CO₂ emissions, there’s a significant shift toward sustainable synthetic lubricants derived from renewable sources. These not only reduce carbon footprints but also comply with tightening global emission norms.
• Rapid urbanization—projected to reach 68% of the global population by 2050—is propelling demand for residential and commercial construction, further escalating lubricant consumption for supporting equipment.
• Key players driving innovation include Shell PLC, ExxonMobil Corporation, Chevron Corporation, TotalEnergies SE, and BP plc, among others. These companies are actively investing in R&D, expanding global footprints, and launching eco-conscious products like Shell’s Tellus S2 range and TotalEnergies’ Rubia EV3R.
• Recent developments such as Chevron’s USD 1-billion R&D hub in India and Sinopec-Aramco’s downstream expansion reflect the strategic importance of advanced lubricant solutions in future-ready construction ecosystems.